Ryan's correct. As a self-employed, sole prop, I deal with this question whenever I have someone do work for. As a general rule, if they are setting their own hours, using their own equipment and tools, then I treat as an independent contractor (1099). If the person is in my shop, working the hours I prescribe, then I payroll them (read: W-2 employee).
Everyone's situation is different, but my armchair assessment is that your previous *employer* would have some real issues if the IRS decided to investigate/audit. And typically individual state's Department of Labor follow IRS/Federal when it comes to qualifying a person as an employee. (Disclaimer: I'm not a lawyer, nor an accountant, just a self-employed schlub who's asked both of these questions in the past to both accountants and lawyers.) > -----Original Message----- > From: Ryan Potter [mailto:[EMAIL PROTECTED] > Sent: Tuesday, December 13, 2005 3:44 PM > To: Flashcoders mailing list > Subject: RE: [Flashcoders] Independent contractors and unemployment- > > That is the case if they filed correctly. There are rules > for when an employer has to give you a w2 and not a 1099. > check out www.irs.gov. > > Here is a quote from the irs: > > "The general rule is that an individual is an independent > contractor if you, the employer, have the right to control or > direct only the result of the work and not the means and > methods of accomplishing the result." (page 59, p1066) > > Looks like you may have a case. > > Here is the tax code that defines what an employee is > (Publication 15-A Employers Supplemental Tax Guide): > http://www.irs.gov/publications/p15a/ar02.html#d0e338 > > Here is a very useful publication as well (page 59): > http://www.irs.gov/pub/irs-pdf/p1066.pdf > > > Here are the instructions for 1099 and w2. > http://www.irs.gov/pub/irs-pdf/i1099gi.pdf > http://www.irs.gov/pub/irs-pdf/iw2w3.pdf > > > > > > -----Original Message----- > From: [EMAIL PROTECTED] > [mailto:[EMAIL PROTECTED] On Behalf > Of Farid Shahlavi > Sent: Tuesday, December 13, 2005 12:21 PM > To: Flashcoders mailing list > Subject: Re: [Flashcoders] Independent contractors and unemployment- > > It basically boils down to whether you were a 1099 or a W2 > employee, if they gave you a W2 at the end of the year and > you worked full-time hours, then you are entitled to > unemployment benefits unless you were fired for whatever > reason that they can dispute your filing. > > If you received a 1099, then you are considered a self > employed consultant even if you worked full-time and > exclusively for that one company. All this is of course > assuming that you were working here in the US. > > HTH > > Farid > > --- Manuel Saint-Victor <[EMAIL PROTECTED]> > wrote: > > > This is OT and I apologize in advnce but I think this is the > > population that would have had the most experience about > this type of > > situation. > > > > I had been working as a Flash developer for an elearning > company for > > about a year and a half and after they stopped doing business and I > > went to the unemployment office I was informed that there is no > > record of me having worked there. When I called the > company to follow > > up I was informed that I was considered an independent > contractor and > > therefore not entitled to any unemployment benefits etc. > > >From the research that I have done it seems to me > > that by controlling the > > hours that I was supposed to work, when and where I did the > work and > > micromanaging every aspect of how the project was done that they > > eliminated they eliminated their stake at me being an independent > > contractor. > > > > If anyone has had any experience or knowledge about this type of > > situation and where I stand and how I should go about handling this > > situation I would greatly appreciate any advice about this. > > > > Thanks, > > Mani > > _______________________________________________ > > Flashcoders mailing list > > [email protected] > > > http://chattyfig.figleaf.com/mailman/listinfo/flashcoders > > > > _______________________________________________ > Flashcoders mailing list > [email protected] > http://chattyfig.figleaf.com/mailman/listinfo/flashcoders > > > _______________________________________________ > Flashcoders mailing list > [email protected] > http://chattyfig.figleaf.com/mailman/listinfo/flashcoders > > > _______________________________________________ Flashcoders mailing list [email protected] http://chattyfig.figleaf.com/mailman/listinfo/flashcoders
